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The U.S. Education Department has ordered Corinthian Colleges, Inc. to repay more than $775,000 in federal loan funds in the wake of an investigation into alleged mismanagement by aid officials at the company's Bryman College-San Jose campus, Corinthian said in a news release late Thursday.
The company said that it had received a "final determination letter" from the department that "resolves the program review" conducted at the San Jose campus in late 2003. The department ordered Corinthian to return $776,241 in Perkins and Federal Family Education Loan program funds but did not impose any fines or penalties, the company said in its release.
Corinthian also said that the department had not restricted Bryman's ability to award financial aid to its students going forward.
"We are pleased to have brought this matter to a conclusion," said Jack Massimino, Corinthian's president and chief executive officer. "We worked cooperatively with the department from the outset of this program review to address the issues that were created by certain personnel at the campus who are no longer employed by Corinthian. We appreciate the department's willingness to work with us, and believe that we have strengthened our controls and compliance procedures as a result."
